I don't feel Poor, but I am?

[melekmikayel]

Is my situation really that bad?

Do everyday normal Australians working full time really earn 100k+ p.a ? If so what do they do? and whats the work-life balance like?

I'm nowhere near that but I get to do most school drop off's, I'm home in time for dinner (5:30) I work 5 days (Tuesday-Saturday) and have essentially unlimited sick leave.

I don't blame anyone but myself for our financial situation, and I don't blame anyone but myself for decisions I made in my teens through early 30's.

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My Background:

I come from a average working class background, grew up very poor (single mum, dad never played a cent of child support) but didn't know it thanks to mums approach in raising us.

Addiction, Apathy and Mental Health issues through my Teens / 20's / early 30's

Never had any real advice or support in finding a 'career' /pursuing futher education / how to manage money. Wasn't actively discouraged either but certainly not encouraged beyond, "it's a good thing to do / work it out for yourself"

I graduated highschool (barely) never really had a 'real' job, some casual work, off and on the books, centrelink bludger, would get a job that had potential but then would flake out on it, hardest thing I ever did was complete a 3 week security course (then never worked in that industry)

Wife also had no financial instruction apart from "save everything / spend nothing /make sure you top level insurance on everything."
____________________________________________________________

Somehow through luck, love, getting clean and finding Jesus I've ended up with a Wife, 3 Kids and an (older) 4 bedroom house (bought 10 years ago)

I make the most money I ever have in my life at $63024 p.a before tax (though I do only work between 25-30 hrs p/w + 10 hrs driving p/w) and I don't really see how I could ever earn more than that as I am unskilled, unexperienced and unable (various reasons) to study.

Wife earns slightly less/the same/slightly more than me (depending on year) but only works 2-3 days p/w.

We don't have any debt apart from the house and don't live extravagant lifestyles though we do get to many takeaways and have to many streaming services and I donate money we don't really have to Church to help those with less than ourselfs plus be charitable to people on the street if I can.

I've very little super as I never made much and some of it was off the books.

Assuming I can't upskill and would find it very difficult to even move into a position of equal pay closer to home, what would you all suggest as a way to start seriously planning for our future?

What would you do in my situation to help set yours kids up?

Anyway cheers for reading and God Bless you.

 

[heidye]

@melekmikayel

and an (older) 4 bedroom house (bought 10 years ago)

That is a huge difference in financial position compared to many, particularly younger people. You are largely living in the earlier economy that was favourable to wage earners, and are part of the asset owning class. The gains in asset values may be irrelevant to you since they are on paper, but you didn't have to buy in at ridiculous prices. And that is why you don't feel poor, and everyone else does

 

[deerlane]

@heidye Yep. Plus he has a big enough house to house the kids as they get older and he can give them the guidance he didn’t have. they can save. He can sell the big house when he’s heading into retirement and downsize.

 

[melekmikayel]

@deerlane Massive yard, but living spaces are pretty small, best option I can see as the kids get older is convert the under roof garage into a rumpus room DIY Style apart from maybe the asbestos ceiling removal.

 

[deerlane]

@melekmikayel They each have a bedroom. It will do. You did good dad.

 

[crazydreamer]

@melekmikayel Wonder what your wage was vs cost of buying that house 10 years ago - blows me away how many ppl continue to look backwards and chant “woes me…”
Edit - don’t care about stupid down arrows. If it helps one person think maybe, just maybe their right…if you can’t afford to buy a house where you live, do something - worlds not going to sort you out because your feeling Sorry for yourself…move, get a better job, educate yourself, what ever…just DO something.

 

[deerlane]

@melekmikayel They each have a bedroom. It will do. You did good dad.

 

[mikelerten]

@heidye I wish I could tell my 10 year younger self to stop blowing money on vodka red bulls and save for a $500k house in Sydney.

 

[dpardue]

@heidye 10 years ago isn't 30 years ago.

 

[isschade]

@dpardue My parents and grandparents houses near tripled in value in the last 10 years and that's in a small town on the south coast of NSW, not a big city. Wages in the area certainly haven't tripled in that time

 

[mjones66]

@isschade My boomer uncle bought one in Homebush. 3 bedder 560 Sqm for 560k in 2009. Today it’s valued at 2.4m.

 

[joshuabrandon9]

@dpardue It's a HUGE difference. Right when house prices were just starting to go up, interest rates were around 3%, and the bank lending criteria (loan serviceability) wasn't as tight as it is now. Our 3 bed has doubled in value, we can't move to (much needed) larger house despite earning almost double than 10 yrs ago because lending criteria is SO tight and house prices are so exorbitant.
ETA: really though, we are just super lucky to have a roof over our head that we are paying off for US and not some landlord, no matter how inappropriate it is for our family's future needs.

 

[melekmikayel]

@dpardue While I support this comment, I am talking about Adelaide in a tightly held but traditionally working class suburb 10 yrs ago so my 4 bedder was 375k.

Neighbours who bought 10 / 15 yrs before that paid just under 200k for their 3 bedder.

 

[introvertedbookworm]

@melekmikayel I’m in QLD in a tightly held traditionally working class suburb and my mortgage is double your total house cost. And we had a 27% deposit. Bought post COVID. Not a flash house but also 4 (very small) beds.

I earn $100k+ with a $60k HECS.

 

[positivityn2018]

@dpardue House prices in my town have gone up $100k in 2 years let alone 10.

 

[miss_clueless]

@heidye

But you didn't have to buy in at ridiculous prices

Didn't think I'd be on the other side of this debate so early in life, but this is bullshit.

The Boomer argument doesn't apply here, and the situation for first home buyers hasn't changed much in the last decade. There are still plenty of affordable homes in undesirable suburbs.

It's easy to look at homeowners today and think they have a "nice" home in a "nice" suburb. But what you are forgetting is how undesirable those homes were a decade ago.

Stop playing the victim, buy a shitty home in a shitty suburb, and a decade from now anonymous strangers on the internet can say you too are part of the asset owning class.

 

[glorytogod91]

@miss_clueless Guy was working cash in hand and bought a 4 bedder you absolute peanut. Houses are twice the price they were a decade ago, goods are close to, salaries are not. Interest rates were also near 0.

 

[miss_clueless]

@glorytogod91 You've missed the point. You can still find homes for sale at the same price point that people were paying a decade ago.

Also, the average variable home loan rate in 2014 was 5.95%.

 

[alj1984]

@miss_clueless depends what you mean by affordable, finding a 4br place is 1mil minimum

 

[miss_clueless]

@alj1984 You can still find four bedroom homes in Sydney for around the price that I paid a decade ago.